Forex Today: Dollar’s weakness keeps spreading, Brexit deal awaited

Here is what you need to know on Wednesday, December 16:

The dollar found some market favor at the beginning of the day amid a risk-off mood but ended the day in the red against most major rivals.

The sentiment was sour amid fresh coronavirus-related lockdowns in the US and Europe, as e New York Mayor Bill de Blasio warned that the city needs to prepare for a full shutdown, as the number of hospitalizations keeps growing. Germany, the Netherlands, and London have announced tight restrictive measures.

Brexit tensions keep mounting.  UK PM Boris Johnson’s spokesman said that the UK wants a post-Brexit deal but not “at any cost.” PM Johnson told his senior minister that the most likely outcome was a no-deal Brexit. The news feeds were flooded by rumors and speculation, but no official announcement has been made at the end of the day. Speculation that the EU and the UK are close to clinching a deal sent GBP/USD to the 1.3450 price zone.

The Canadian dollar was the best performer, with USD/CAD falling below 1.2700 a fresh multi-year low. Higher oil prices and Wall Street’s advance underpinned the commodity-linked currency.

The US Electoral College formally voted to elect Joe Biden on Monday, and Senate Majority Leader Mitch McConnell acknowledged Joe Biden as the president-elect.

 The US  Food and Drug Administration confirmed that the Moderna’s coronavirus vaccine has an overall efficacy of over 94%, and could grant it emergency use before the weekend. A group of experts is set to meet next Thursday to offer their recommendations.

 Gold prices surged to fresh weekly highs above $1,850 a troy ounce, amid the broad dollar’s weakness. WTI settled at $47.50 a barrel.

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